Isn't this market fun? Here's what Rev. Shark had to say about the current environment, or as he called it, a freakshow market:
This is one of the most difficult markets I have ever tried to trade. Most of the experienced traders I know are frozen and doing nothing because the action is so random. I've heard this called a "freakshow" market because things are so far from normal. No one seems willing to trust a trade to work for more than a few hours, and that just adds to the randomness.As both Alan Farley and Dan Fitzpatrick have said, we just have to wait it out. Just don't lose money now, and sooner or later, we'll get some better trading. I'd almost prefer a big one-day crash to speed things up, but I don't think it is going to happen that way. We are going to slowly and painfully work through this.
Ah, fun times. I happily sat on the sidelines Monday & Tuesday. But yesterday I tried my best to find something (anything!) to trade and couldn't find any setups I liked and I didn't like how the indices were acting. Fun times. I'll just stay in "preserve capital" mode until this madness passes.
On Today's Calendar:
- 10:00 -- New Home Sales
More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates. Also be sure to check my typical swing trade entry & exit rules.
Potential day trades:
(From Briefing.com)
Gapping Down
In reaction to disappointing earnings/guidance: FIF -6.5% (light volume), GE -5.1%, RHT -4.5%, RAD -4.2%... Select food processing cos trading lower following PPC announcing that it notified lenders that it expects to report a significant loss in Q408: SFD -11.3%, TSN -9.2%, SAFM -5.7%... Other news: COF -7.6% (prices a 14 mln share common stock offering at $49/share).
Gapping Up
In reaction to strong earnings/guidance: NKE +4.8%, MKC +1.4%... Select financial related stocks showing strength: FNM +37.4%, FRE +27.0%, WM +17.3% (explores being bought by a private-equity player - WSJ), ABK +15.9%, AIG +11.8%, WB +5.3%, UBS +5.1%... Select airlines ticking higher with crude lower: DAL +5.7% (initiated with Buy at Stifel), LCC +5.3%, AMR +4.6% and UAUA +4.3% (initiated with Buy at Stifel)... Other news: TOPS +39.1% (announces short-term exclusivity agreement), PCOP +33.6% (Ligand to acquire Pharmacopeia for stock and contingent value rights of up to $70 mln), TMTA +24.0% (initiates process to seek sale of the company; also announces two agreements with Intel; to receive one-time payment of $91.5 mln), BSX +7.0% (announces FDA approval to market its TAXUS Express2 Atom Paclitaxel-Eluting Coronary Stent System), CSUN +5.8% (enters into sales agreement with Wuxi Guofei Green Energy Source), BZH +4.1% (announces SEC settlement; cease and desist order, no fine to be paid), SEPR +3.5% (new data show efficacy and safety of eslicarbazepine acetate in the treatment of epilepsy), SMS +2.8% (Cramer makes positive comments on MadMoney)... Analyst comments: BIIB +2.8% (upgraded to Buy at Lazard Capital).
Disclaimer & How I use this list
I had to take a break from RM a few days ago because I was getting sick of article after article from Cramer on how we should blindly accept the bailout plan.
I like Shark, Alan, Kass...but Cramer gets in the way too often!
I just subscribe to Farley & Shark's RSS feeds. The only time I hit the site is when something interesting from one of them hits the feed.
I like Kass too BTW.
I've sat out swing trading for the past couple of months, but I have found it to be very fertile ground for day-trades (5 or 10 minute bars) with no overnight exposure. Swing trading or any overnight exposure seems to be pure gambling (especially within the past two or three weeks).
I really like Alan Farley. I can't stand Cramer.
Mike, this cracked me up. I remember when I bought my first house...walking into that Zales to sign my legal docs and pickup my keys. Good times, good times.
Rev Shark
And the List Keeps on Growing
9/25/2008 6:09 PM EDT
Well known financial institution, Zales, which also sells jewelry on the side, is added to the list of financial stocks that can not be shorted.
sheer madness!
I have to say - I am quite frustrated by your recent market commentary. "freakshow," not normal - that is BS! Markets are the markets. What are they telling you? Are you listening? Too much complaining and excuses when the market is moving against you too often. To be honest, you seem a little afraid to believe in what the indicators are telling you.
Ah, it's always the anonymous people who leave comments like this...
First, Rev Shark is the one who used the word "freakshow", not me.
Second, how can the market be moving against me when I've been in cash all week? Are you projecting your issues onto me?